Navigating your way through commercial property transactions can be challenging, unless you have done a lot of homework. Read over the tips in this article to get the information you need.
Use detailed photos to create this documentation. Be sure the photos capture any defects that exist in the unit, such as holes in the wall, and damaged or dirty carpets.
If you are looking to lease or rent, the issue of pest control is a critical one to address. If you are renting in an area that is known to have a lot of rodents, pests, or bugs, then ask your agent what the policies on pest control are.
If you are trying to choose between two good commercial properties, think big. Getting enough financing is a huge undertaking, no matter if you get a ten-unit complex or a larger twenty-unit one. Also, purchasing more units is like buying in bulk. The more you buy, the cheaper each unit will be.
When you are choosing real estate brokers, you should find out the brokers’ experience level in commercial real estate. Make sure that their particular business focus includes what you are interested in. With that broker, you also want to enter into exclusive agreements.
If you have the intention of offering your commercial real estate for rent, look for buildings that are simple and solid in construction. These are the most likely to quickly invite tenants into the space, because they know it is well-cared for. These properties are also more cost effective for you and your tenants due to the fact that they only require minimal upkeep and repairs.
Check into having an inspector look through your property before you put that property back on the market. If the inspections turn up any problems, remediate them before listing the property for sale.
If there is more then one property you are considering, acquire the house survey checklist for each one during your site tour. Accept the proposal responses from the first round, but be sure to inform the property owners directly if you decide to go further in your inquiries. You should not have any hangups about letting the owners know that you are still deciding on other properties. This may help you snag a better deal, ultimately.
Any new space you acquire might need some improvements prior to you occupying it. These may be simply applying new paint or a change in furnishings. You may even need to tear a wall down to make the floor plan fit your needs. Get an agreement ahead of time about who will be financially responsible for these improvements, or at least try to have the landlord responsible for part of the cost.
There isn’t just one type of broker for commercial real estate. Some are full service brokers, and they work on behalf of landlords and tenants. Others are agents who represent only tenants. A tenant’s-only broker may serve your needs better than a full service broker.
Carefully peruse the disclosure statements issued by the real estate agency you intend to hire. Remember that a dual agency could occur. With a dual agency, you have the real estate broker working on each side of the transaction. This means the real estate agency will work as the landlord and the tenant. If this is the case, and the agent is a dual agent, this should be known to both parties and agreed to by both parties.
Before initiating a purchase, be sure that you are negotiating with a customer-focused company. If you don’t do your research and end up in bed with wolves, you will be the one to suffer.
Find out how your real estate agent conducts negotiations. You can ask them how much experience and training they actually have. Look for a broker who always adopt an ethical approach, has values and know where to get good deals. Have them provide you with examples of negotiations they’ve engaged in previously, both good and bad.
Commercial Real Estate
The above article provides lots of excellent knowledge you can apply when purchasing or selling commercial real estate. Check your local newspaper and online sources for up to date information about commercial real estate in your town.